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Business in Asia Today



Oh Ho-keun is new head of Daewoo Motor
SEOUL - Oh Ho-keun, chairman of the Corporate Restructuring Coordination Committee, has been designated as the new chairman of Daewoo Motor, financial sources said Monday. The government and Daewoo's creditors are expected to make a formal announcement on Oh's appointment later in the day.

Renault sets up office for Samsung inspection
SEOUL - An inspection team from French automaker Renault has set up offices in Seoul and Pusan recently as part of research for the purchase of Samsung Motor, Samsung officials and creditors said Monday. The team, which arrived in Korea January 17, will reportedly contact Samsung and examine documents in Seoul while focusing on spot inspections of the factory and related companies in Pusan.

Foreign investors buy more Korean corporate bonds
SEOUL - Foreign investors have started to buy more South Korean corporate bonds after the government's recent announcement that it planned to boost the bond market this year. The Financial Supervisory Service said Monday that from November last year foreign investors made net bond purchases of 351.3 billion won (US$311.7 million) from 23.3 billion won in net-selling in the preceding month. In December, net purchase of bonds by foreign investors amounted to 243.1 billion won and net selling 238.7 billion won this month as of Friday. Bonds held by foreign investors totaled l.34 trillion won.

Korea's Sewon Telecom secures $30m investment
SEOUL - Kosdaq-registered Sewon Telecom on Monday said that it secured $30 million in investment from Credit Swiss First Boston Bank (CSFB). CFSB will purchase Sewon's unsecured convertible bonds issued on the euro market, Sewon said. CBs will be issued around late this month or early next month and mature in three years with an interest rate of zero percent. They can be converted to stocks three months after the issuance to a month before maturity with Dongyang Securities as the underwriter.

Sumitomo consortium lends Korean Shinhan $200m
SEOUL - Shinhan Bank (KSE: 15580) said Monday it has successfully borrowed $200 million directly from a consortium of lenders. The consortium includes 10 banks lead managed by Sumitomo Bank, which is liable for the entire loan amount, and the loan bears an annual interest rate of 1.25 percent over Libor.

Korean cos develop gigabit backbone switching system
SEOUL - The Ministry of Information and Communication said Monday that a gigabit ethernet backbone switch system, a core facility of super high-speed LAN, was first developed in Korea by the Electronics and Telecommunications Research Institute and Medialincs. The system is expected to record exports of $10 million by 2003 and the import substitution effect will be worth 50 billion won ($44 million) by 2003.

OKI Electric markets Internet voice gateway
TOKYO - Oki Electric Industry Co (TSE: 6703) has begun sales of an Internet voice gateway that works with existing telephones. The product, which connects to the Internet or an intranet via a router, includes functions that enhance sound quality by correcting for interruptions in the audio stream. It is designed to handle up to four phone lines and also includes fax capabilities. The voice gateway starts at 480,000 yen ($4615) and Oki is targeting worldwide sales of about 50,000 units a year.

Tepco, others to begin cogeneration business
TOKYO - Tokyo Electric Power Co (TSE: 9501) announced Friday that in March it will establish a joint venture with four other firms to install and operate cogeneration systems for customers. The venture will be capitalized at 1 billion yen. Tokyo Electric Power, known as Tepco, will have a majority stake in the firm while Nippon Mitsubishi Oil Corp (TSE: 5001), Mitsubishi Corp (TSE: 8058), Kandenko Co (TSE: 1942) and Takada Corp (TSE: 1966) will divide the remainder.

Volkswagen Japan extends sales contract with Toyota
TOKYO - Volkswagen Group Japan KK announced Friday that it has extended its sales contract with Toyota Motor Corp (TSE: 7203) by three years to fiscal 2002. The subsidiary of Germany's Volkswagen AG and Toyota was formed by a tie-up in 1992. Toyota group firms have opened 150 dealerships in Japan that sell Volkswagen cars.

Daihatsu to make minicars in Pakistan
OSAKA - Daihatsu Motor Co (TSE: 7262) announced Friday that it will start producing and marketing its Mira minicar in Pakistan in the first half of 2000. The firm will manufacture the vehicle through Indus Motor Co, a local automaker in which Daihatsu parent Toyota Motor Corp (TSE: 7203) is an investor.

GE, Toshiba form silicone venture in China
SHANGHAI - Toshiba Corp (TSE: 6502) and General Electric Co have set up a joint venture here to produce silicone resins for use in a wide range of containers. GE Toshiba Silicones Shanghai Co is capitalized at US$12 million, with GE holding a 51 percent stake and Toshiba owning the balance. Construction work on a factory in the Pudong business district will begin soon. The US$25 million plant is expected to be completed in April 2001.

Malaysia's Commerce-BT in distribution deal with banks
KUALA LUMPUR - Commerce-BT Unit Trust Management Bhd has entered into an arrangement with Citibank, HSBC, Deutsche Bank, Overseas Union Bank, Standard Chartered and ABN Amro Bank to distribute its unit trust products. "At Commerce-BT, we are are very excited about the decision of the Securities Commission to endorse the distribution of unit trusts through third party distribution such as banks," said Commerce-BT Chief Executive Officer, Neville Azzopardi. "This means that for the first time, Malaysian investors will be able to invest in unit trust funds managed by different asset managers, all through the same distributor," he said.

Etako.com sees $6.6m revenue in 2 years
KUALA LUMPUR - Information technology Application Service Provider, etako.com (M) Sdn Bhd aims to rake in RM25 million ($6.6 million) revenue over the next two years, its chief executive officer Karen A Fukumura said. The company's estimate was based on the expectation of a strong growth potential for e-business in Malaysia, particularly with the growing number of small and medium enterprises.

Malaysia's Kinta Kellas to divest $35m bonds
KUALA LUMPUR - Malaysia's Danaharta Managers (L) Ltd has agreed to Kinta Kellas Public Listed Company's unit proposal to divest RM132.5 million ($34.96 million) initial principal amount of redeemable convertible bonds due 2005/2006 issued by Projek Leburaya Utara-Selatan Bhd (PLUS), it was announced Friday. Commerce International Merchant Bank (CIMB), in filing to the Kuala Lumpur Stock Exchange on behalf of Kinta Kellas, said the divestment by the wholly-owned subsidiary, Builders Credit & Leasing Sdn Bhd, was to fully settle a term loan facility together with interest amounting to $36.57 million as of November 5 last year.

CHHB to submit bid for UK's Millennium Dome
KUALA LUMPUR - The Malaysian consortium set up to bid for the construction of London's multi-billion dollar Millennium Dome project is poised to submit its final proposals to the UK government, managing director of the consortium leader Country Heights Holdings Bhd's (CHHB) Lee Kim Yew said over the weekend. The proposal would contain detailed plans of the consortium's vision to turn the dome into a one-stop theme park promoting intercontinental trade, tourism, culture and knowledge as well the financial package, he said in an interview here.

Top management of BNI to be replaced
JAKARTA - In accordance with a letter of intent signed by the Indonesian government with the IMF on January 20, the top management of the state-owned Bank Negara Indonesia (BNI) will be replaced before the end of this month. The minister in charge of state-owned companies has accused BNI of illegally extending credits amounting to around $754 million to a local conglomerate.

Bank Negara Malaysia to borrow $1.31bn
KUALA LUMPUR - Bank Negara Malaysia is expected to borrow, via competiitve tenders, RM5.0 billion ($1.31 billion) to offset a liquidity surplus of RM6.84 billion in interbank conventional operations. Of the total, the central bank is estimated to borrow RM2.5 billion of two-week money and RM2.5 billion of one-month money.

Bank Indonesia unlikely to liquidate 3 category A banks
JAKARTA - Bank Indonesia (BI) will probably not liquidate three catagory A banks that have suffered a drop in capital adequacy ratio (CAR), since these banks have duly made additional cash injections so as to reach a CAR of more than 4 percent as required. "The banks have submitted proof to us that they have duly paid up the necessary capital so as to make their CAR to reach more than 4 percent," BI governor Syahril Sabirin said after a working session with House Commission IX in charge of economy and finance here last Friday.

Indonesia's Medco to buy 3 oil, gas firms
JAKARTA - PT Medco Energy Corp Tbk (JSX: MEDC) says it is ready to take over three foreign oil companies to increase its assets before its listing plan on the New York Stock Exchange (NYSE). Thendri Supriatno, Investor Relations Manager of PT MEDC said that the takeover deal would be signed later this month, but he declined to name of the investors.

Australia's Portman Mining to restructure iron ore JV
PERTH - Portman Mining Limited (ASX: PMM) has taken a further step in its iron ore growth strategy, announcing plans to restructure its Koolyanobbing Iron Ore Joint Venture with China's Anshan Iron and Steel Complex (Angang) by taking 100 percent ownership of the project. The Australian company has signed a Letter of Intent with Angang to acquire its 40 percent equity in the project as of January 1 2001. Portman's Managing Director, Geoff Wedlock, said the move was part of Portman's long-term plans to lift output from the Koolyanobbing operations and establish the project as a major strategic supplier of high quality lump ore and high-grade sinter fines to Asian markets.

Australia's Stockland shareholders OK trust deed changes
SYDNEY - Shareholders in listed Australian property investor and developer Stockland Trust have overwhelmingly approved amendments to the trust deed to effectively instate a new management regime. At a general meeting in Sydney, more than 99.9 percent of votes cast, including proxies, were in favor of the changes, which included the merger of the trustee and manager roles into a Single Responsible Entity. This role will be taken by Stockland Property Management Ltd, while the current trustee, Trust Company of Australia Ltd, will in future act as an asset custodian.

Australia's Leighton acquires 70% in John Holland
MELBOURNE - Australia's largest construction company Leighton Holdings, which has a business in Malaysia, will acquire a 70 percent stake in the John Holland construction group. Leighton has finalized the deal without handing over any cash to the Janet Holmes a Court private company, Heytesbury, but will take on significant bank guarantees and repayment of loans. The annoucement ended a search of almost two years by Heytesbury to find a buyer for the Melbourne-based John Holland. The deal is expected to be settled on February 5.

NZ gas co NGC reaches supply deal with Genesis Power
SYDNEY - New Zealand gas transmission company Natural Gas Corp Holdings Ltd (NGC) has solidifed its position in the NZ gas supply market, tying up a deal with energy retailer Genesis Power. Under the deal, which was reached after a competitive tender, NGC will supply around 90 petajoules of gas to Genesis in varying amounts over the next eight years, for use in the Huntly and Te Awamutu power stations in the central North Island.

(Asia Pulse)

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